Donnkenny, Inc. receives extension to lending agreement; Borrowing limits increased significantly - Fashion Avenue Knits acquisition rescinded -.NEW YORK--(BUSINESS WIRE)--Feb. 3, 1997--Donnkenny, Inc. (Nasdaq: DNKY) today announced that it had concluded arrangements with its senior lenders, The Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. , The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. and Fleet Bank, N.A., to extend the term of the parties' previously announced waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. agreement from February 27, 1997 until April 30, 1997. The new arrangements, which continues a waiver of certain defaults under Donnkenny's Credit Agreement, also increases the Company's credit availability to $70 million and continues a term loan of $17.5 million. The Company stated that this increased credit availability would be sufficient to meet its anticipated business needs for the period covered by the new agreement. Harvey Appelle, Chairman of Donnkenny, noted, "The new bank agreement advances the steps the Company has undertaken to maintain the stability of day-to-day operations and restore Donkenny's financial credibility." The Company also announced that it had mutually agreed with the former owner of Fashion Avenue Knits and related companies to rescind To declare a contract void—of no legal force or binding effect—from its inception and thereby restore the parties to the positions they would have occupied had no contract ever been made. rescind v. the previously announced acquisition of these businesses. Mr. Appelle said, "The Donnkenny management team believes that the resources of the Company would be better focused on the Company's core businesses, and it would be inappropriate at the present time for Donnkenny to be pursuing acquisitions." Donnkenny designs, manufactures, imports and markets women's sportswear and markets women's, men's and children's sportswear and intimate apparel featuring various licensed cartoon cartoon [Ital., cartone=paper], either of two types of drawings: in the fine arts, a preliminary sketch for a more complete work; in journalism, a humorous or satirical drawing. characters. CONTACT: DONNKENNY, INC. Stuart S. Levy Chief Financial Officer 212/730-7770 Ext. #3039 or Investor Relations Investor relations The process by which the corporation communicates with its investors. : David Walke/Howard Zar/Shannon Moody Press: Stacy Berns/Jeff Siegel Morgen-Walke Associates, Inc. 212/850-5600 |
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